CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS A. General description of the small scale project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders’ comments Annexes Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information 1 Revision history of this document Version Date Description and reason of revision Number 01 21 January Initial adoption 2003 02 8 July 2005 The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <http://cdm.unfccc.int/Reference/Documents>. 03 22 December The Board agreed to revise the CDM project design 2006 document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM. 2 SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: Amberd Cascade Small Scale Hydroelectric CDM project 03/21/2009, Version 03 Revision history of the document: Version of the document Date of the document Reason for revision Version 01 01/09/2008 - Version 02 17/12/2008 Revised in accordance with the resolution of corrective action and clarification requests of TÜV SÜD. Version 03 21/03/2009 Revised in accordance with the resolution of corrective action and clarification requests of TÜV SÜD. A.2. Description of the small-scale project activity: The Amberd Cascade Small-Scale Hydropower Project (hereafter referred to as the Project) developed by Amberd HEK LTD (hereafter referred to as the Project Developer) is a small-scale hydropower project in Aragacotn Marz in the Republic of Armenia. Total installed capacity of the Project will be 11.54 MW. The project consists of three levels of power stations. The capacity of the first power station is 2.4 MW, the capacity of the second station is 4.27 MW and the capacity of the third station is 4.87 MW. Amberd-1 will start generate electricity in April 2009, Amberd-2 in August 2009 and Amberd-3 in April 2010. The electricity generated by Project will be sold to the Armenian Electricity Network (AEN). Purpose of the project activity The main purpose of the project activity is generation of clean hydroelectric energy and contribution to climate change mitigation efforts. Contribution to sustainable development The project will generate renewable and clean electricity and thus, contributes to sustainable development which includes: 1. Social sustainability The project activity will create jobs opportunities in the area with very high unemployment level for skilled and unskilled labor during the construction and operation of the plant. The implementation of the project will benefit the Armenia through development of additional sustainable generation capacity not dependant on the imported energy sources, which will add to the independence of the energy system of the Republic as well. Implementation of the project will also contribute to development of experience and intellectual capacity among the local construction workers that will go through a set of trainings, organized by the Project Host during the project implementation, which will help them to become a skilled work force in future as well. The trainings are not contractually considered. 3 2. Environmental sustainability According to the Environmental Impact Assessment conducted for this project (the EIA for Amberd-1 and Amberd-3 SHPPs was completed in February 2008, For Amberd-2 in December 2008) the construction of the hydro power plants not affect the quality of the river water, as well as the well being of the local population. Moreover, the project activity will have a positive impact on the environment as it will displace part of electricity generated by the conventional power plants in the national grid, thus avoid environmental pollution caused by the burning of fossil fuel and lead to an increased sustainability in the power generation sector. Total expected CO2 emission reduction from the proposed project is estimated to the amount of 82,741.19 tCO2 over the ten year crediting period. 3. Economic sustainability The implementation of the project will increase funds for municipality and state budget due to tax collection. The project implementation will also generate employment possibilities for the local population which lacks available workplaces in their region. During the project implementation locally produced equipment will be used which will benefit the renewable energy technology an intellectual capacity development in Armenia. The Project complies with the Energy Strategy of Republic of Armenia which promotes the development of new renewable energy technologies and capacities. In addition, implementation of the project will also contribute to the sustainable development of Armenia through reducing the dependence on imported energy carriers, such as natural gas, thereby reducing the outflow of capital from Armenia to other countries. A.3. Project participants: Name of Party involved (*) Private and/or public Kindly indicate if the Party ((host) indicates a host Party) entity(ies) involved wishes to be project participants (*) considered as project (as applicable) participant (Yes/No) Republic of Armenia (host) Private entity: Amberd HEK No LTD Germany Private entity: EnBW Trading No GmbH (*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public at the stage of validation, a Party involved may or may not have provided its approval. At the time of requesting registration, the approval by the Party(ies) involved is required. A.4. Technical description of the small-scale project activity: A.4.1. Location of the small-scale project activity: A.4.1.1. Host Party(ies): Republic of Armenia 4 A.4.1.2. Region/State/Province etc.: Aragacotn Marz A.4.1.3. City/Town/Community etc: Orgov Community A.4.1.4. Details of physical location, including information allowing the unique identification of this small-scale project activity : Aragacotn Marz 5 The Project is located on the Ampur and Amberd rivers in Aragacotn marz (i.e. region) near Orgov Community. The Aragacotn marz is a mountainous region of Armenia, characterized by smooth winter conditions and a water rise from April to July. The power plants have the following GPS coordinates: Amberd-1 SHPP Water Intake Longitude: 40° 25’ 18’’N Latitude: 44° 10’ 10’’E Power house Longitude: 40° 24’ 35’’N Latitude: 44° 11’ 31’’E Amberd-2 SHPP Water Intake Longitude: 40° 24’ 23’’N Latitude: 44° 11’ 39’’E Power house Longitude: 40° 23’ 26’’N Latitude: 44° 13’ 44’’E Amberd-3 SHPP Water Intake Longitude: 40° 23’ 14’’N Latitude: 44° 13’ 52’’E Power house Longitude: 40° 22’ 17’’N Latitude: 44° 12’ 16’’E A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: The project activity utilizes the hydro potential of Ampur River for power generation and exports the generated power to the grid. According to small-scale CDM modalities the project activity falls under 6 Type – I – Renewable Energy Projects and Category I-D – Grid connected renewable electricity generation. The Armenian energy sector In the Soviet period thermal power plants (TPP) produced 59% of gross electricity production in Armenia primarily consuming Russian natural gas; the Armenian Nuclear Power Plant (ANPP) produced 31%, and hydropower plants (HPP) only 10% (data for 1988). The ANPP was shut down after the 1988 earthquake. After the independence of Armenia, due to a potential energy crisis, the Armenian government had to reopen the ANPP. Nevertheless, given its poor technical condition, the ANPP is expected to be shut down by 2016 and more capacity on the national Armenian grid will be needed. According to data of the Armenian Public Service Regulatory Commission in 2007, about 43.3% of the Armenian electric generation came from nuclear, about 27.8% came from large HPPs, 0.05% came from wind, 25.2% from TPP (operated with natural gas), and only 3.65 from small hydro power plants. Hence, the proposed technology is not commonly used technology in Armenia. According to “Energy Sector Development Strategies in the Context of Economic Development in Armenia” adopted by the Government of Armenia in August 2005, modernizing and replacing the current thermal and hydro generating capacity is essential. The capacity additions between 2005 and 2016 planned in the same document include additions to existing thermal power plants and installation of new hydro and wind power plants. The planned thermal power plants capacity additions would increase the carbon emission factor of the Armenian electric grid compared to the carbon emission factor calculated as the average between the approximate operating margin and the build margin. Technology description: The proposed project applies state of the art technology. The equipment used in the project will be developed and manufactured locally as well as imported from Czech Republic. The total installed capacity of the project is 11.54 MW with total expected annual net electricity generation of 29,680 MWh per annum. Amberd-1 SHPP The Amberd-1 SHPP will be constructed on the administrative territory of Orgov community, on the upper flows of the Ampur River (which is the confluent of Amberd River). This is the first level of the Cascade of Amberd SHPPs, and it will use the 140m height difference between 2,383 m and 2,243m altitudes on the 2.28km distance. The Amberd SHPP-1 will consist of the following parts: Head unit, Penstock, Power house, Tail race (discharge channel).